The Wii just isn't big enough for all the stuff it offers. That's not conjecture, that's fact. So what are Nintendo doing about? Well, when Nintendo's Laurent Fischer isn't pissing you all off by calling you names, he's promising that - snide comments aside - Nintendo know there's something wrong, and are working on it.

We would sure like more Wii memory space! That would be great and make people happy. Wait, strike…
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We definitely detect that they [gamers] are serious and we know there is an issue in this, so it's something that we're working on.

Great! So we're getting an external storage solution, then?

Uhh...no.

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Definitely there's no plan to issue hardware, an external hard drive, but we know that we have an issue in that area. It's very obvious and we're perfectly aware of it, but there's nothing we can say beyond this.